Amazon – $100 Move Ahead?

Amazon (AMZN) shares have been making lower highs above a horizontal support line since the beginning of the year, forming a large triangle pattern. The support line is the 50% retracement level of the 2012 low and the 2014 high and it was successfully tested again this week. A nearly 7.5% bounce took the stock price back up to the 38% retracement, and a small zone of resistance marked by the 50 and 200 day moving averages. The intermediate term direction of the stock could be determined by the integrity of the triangle support and resistance lines, but, regardless of the direction of the break, the triangle pattern projects a potential $100 target move.